Risk Management for Fraternities & Sororities
Dr. Ron Binder
“You can never get rid of risk, only manage it”
0% liability (ceasing to exist) (violating all policies) 100% liability
Five Greatest Areas of Risk for Greeks
3. Alcohol Abuse (not use)
4. Sexual Assault
Risk Management Principles
1. Identify risky behavior
Can someone get hurt?, Has someone gotten hurt in the past?
2. Eliminate or Reduce Risk
Most times we can only reduce the risk
Criminal Liability Civil Liability
Illegal Acts Being sued by someone
Hazing Results in damages
Supplying alcohol Largest settled suit $21 million
Dealing or using drugs Largest filed suit $100 million
Fighting 56% of the time we are sued by members
National Liability Insurance
Most national headquarters provide $1 million in insurance coverage
Average fraternity pays $150/member, sorority pays $100, highest $240
Does not cover anything illegal or against your national policy
What happens if you violate your national policy?
Liability insurance is cancelled
Chapter is on its own to pay for any lawsuits
Most members are still under their parent’s homeowners insurance policies
What is a Chapter Event?
1. Who paid for the event?
Purchasing alcohol, everyone throwing in money to purchase
alcohol, hall rental, transportation, etc.
2. How was the event advertised?
Flyers on bulletin boards, in a chapter house, posted on the
chapter listserve, announcements at meetings, Facebook
3. Were Officers present?
Chapter president and/or social chair present is hard to argue
4. What percentage of the members were present?
Above 50% of the chapter is hard to argue
Most national policies are much more restrictive
Four Riskiest Nights for Greeks
1. Bid Day 2. Big Brother 3. Initiation 4. 21st Birthday
If members followed their Ritual, there would be no need for risk management